With the enactment of the American Taxpayer Relief Act of 2012, the backup withholding rate remains 28%. The Act, passed by the United States Senate and House on January 1, was signed by the President on January 2. If Congress had failed to act, the rate of federal backup withholding would have increased to 31% [...]Read Full Article →

You must apply the proper withholding and reporting rules based on tax residency status to payments to foreign national recipients regardless of whether the recipient was authorized to provide the services or not. It is the provision of services by an unauthorized individual that is a violation of the immigration laws. However, your organization’s payment to the [...]Read Full Article →

Relief Provisions and FAQs on IRC Section 6050W Payments The IRS is providing special transitional relief to banks and other payment settlement entities required to begin reporting payment card and third-party network transactions to the IRS on new Form 1099-K. By law, reporting is scheduled to begin in early 2012 for payment card and third-party [...]Read Full Article →

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